House Ways and Means Committee Chairman Kevin Brady on CNBC Friday warned that cutting the "border adjustment" measure in the overall Republican corporate tax reform plan would have "severe consequences."

The GOP proposals under the banner "A Better Way" — spearheaded by Brady and House Speaker Paul Ryan and released over the summer — call for a reduction of the federal corporate rate from 35 percent to 20 percent, a switch to a territorial system, and border adjustments.

"There's almost no question that without that, a couple of bad things, pretty severe consequences" would happen, Brady told "Squawk Box" on Friday, the morning of Trump's inauguration as the nation's 45th president.